The annual congress of the National People’s Congress (NPC), China’s main annual political gathering, brought together around 3,000 of the country’s deputies in the Great Hall of the People, on which Xi Jinping’s regime outlined the country’s goals for the coming years.
One of the main points established at the meeting is related to the Chinese economy. Premier Li Qiang has put forward a 2026 growth target of “between 4.5% and 5%”, below the target of “around 5%” set over the past three years and the lowest level since 1991.
If China grows at a rate of less than 5% this year, it will be the slowest growth recorded by the country in more than three decades, with the exception of the years of the Covid-19 pandemic. The regime reported that, last year, the country saw its GDP grow 5% in real terms, despite the trade war with the USA.
This indication of a slowdown comes as Beijing faces a moderation in household spending, less investment and a struggling property market. Li highlighted that China must “enhance its own capabilities to deal with external challenges”, a reference to the conflicts unfolding in the Middle East and the pressure launched by President Donald Trump against the country last year.
The most recent projections from the International Monetary Fund (IMF) indicate a 4.5% increase in the gross domestic product (GDP) of the world’s second largest economy in 2026, while the World Bank (WB) predicts slightly lower growth, at 4.4%.
Moderate advance in military spending
During the presentation of the reports, this Thursday (5), Li announced a 7% increase in the defense budget, which will reach 1.91 trillion yuan (about US$277 billion) this year, after increases of 7.2% in 2025, 2024 and 2023. The decision contrasts with the high investments of other countries, such as the USA and Japan.
For some analysts, however, the military budget released in recent years does not reflect the scale of real military spending by China, which recently financed a military modernization that included, in 2025, the entry into service of its third aircraft carrier, Fujian.
Beijing has also stepped up its military activity around Taiwan, with large-scale exercises that Chinese authorities present as warnings against what they consider “separatist forces.”
This process coincides with an anti-corruption campaign that has shaken the military leadership, with the fall of senior officials such as former Defense Ministers Li Shangfu and Wei Fenghe and the former vice-president of the Central Military Commission Zhang Youxia, which reduced this army’s governing body to just two of its original seven members.
Regime reinforces “one China” principle and military tone against Taiwan
Premier Li Qiang emphasized in the annual report that China will promote “national reunification” and “fully implement the Party’s overall strategy to resolve the Taiwan issue in the new era.”
In excerpts from the document, obtained by EFE, Li made it clear that Beijing will act in accordance with the “one China” principle and will oppose what he called “interference by external forces.”
The issue of Taiwan remains a major point of contention in the region, and last month Beijing accused Taiwanese President William Lai of being a “war instigator” after he warned about the regional impact of potential Chinese control of the island.
Beijing considers Taiwan an “inalienable part” of its territory and does not rule out the use of force to achieve “reunification” with the island, which has been self-governed since 1949.
